Thomson Medical Centre

[cyborg]

Key points of Thomson Medical Centre Media Release for Q4FY2010.

1. Thomson Medical net profit surged by 27.8% to S$16.3million for FY2010 on the back of a 21.2% growth in revenue to S$81.7million.
   
2. Full-year revenue for Hospital Operations and Ancillary Services climbed 11.2% to S$57.7 million while full-year revenue for Specialised and Other Services segment jumped 54.6% to S$24.0 million for FY 2010.
   
3. Gross and net profit margin improved to 43.7% and 19.9% respectively in FY2010 on better performance by both business segments.
   
4. Directors recommend a final dividend of Singapore 2.0 cents per share at a payout ratio of 57.8%.
   
5. Directors recommend a bonus issue of 1 share for every 10 shares held.
   

For more details, please download here and here

[pianist]

wa do u think is a fair value for thomson medical?

[violinist]

pianist=lark?

[Drizzt]

really sian. totally missed out on thsi one.

[jeremyow]

Looking at the historical chart, this stock has appreciated for about 54% since this year June to now, in a matter of a short 4 months plus. To achieve this, investors must have noticed the growth potential in this medical company. Healthcare industry is one of the strong growing industry from now onwards. There will be increased spending on all forms of healthcare worldwide. I believe most healthcare companies if their management is good, should be able to steer their companies to ride on this global trend of demand for healthcare services for decades down the road. When there is a strong demand for the goods or services and a healthy shortage of supply in the goods and services, most companies in that particular industry will do well if the management is also capable. This is simple common sense and no complicated mathematics or calculations involved.

[kazukirai]

really sian. totally missed out on thsi one.

Hey Drizzt,

Cheer up man. I missed out on this one too and many others. I think the story going forward for TMC will be Vietnam as a growth driver. The demographics are in their favour but the economics will be another story. When I was there earlier this year, Vietnam had a campaign encouraging only 2 children per family but I don't think they're as draconian as say China was with the One-Child policy.

TMC certainly isn't cheap now but this may be a case where as Buffett said, "It's better to buy a wonderful company at a fair price than a fair company at a wonderful price."

What do you think?

[edragon]

Problem with Vietnam is the devaluation of the Dong. Your investments and earnings got a hit from time to time, mine does.

[Musicwhiz]

really sian. totally missed out on thsi one.

Don't fret my friend, I've missed many more opportunities myself; and I've kicked myself hard on those.

So just be stoic and move on, as I believe there will always be opportunities for those who look hard enough for them.

[kazukirai]

Problem with Vietnam is the devaluation of the Dong. Your investments and earnings got a hit from time to time, mine does.

Hey edragon,

That's really true. The devaluation of the Dong is a big problem for Vietnam. Case in point, I actually got some Dong from my relative who was there on holiday last year. This year in May when I was there, some of the smaller notes were already rendered obselete.

The Vietnamese themselves have no confidence in the currency as I've heard anecdotes from my Vietnamese friends about how they take their monthly wages each month and convert it into USD or Gold the very next day. It doesn't help that there are conspiracy theories of how the government annouces that they will be moving the city center from one area to another area in order to jack land prices up which they subsequently sell to would-be investors.

Ok, before this gets off-tangent, the moral of the story is that macro-risks in Vietnam abound and this is be a risk that TMC has to take in going abroad.

TMC could possibly hedge the Dong risk by doing what the Vietnamese do?

[Drizzt]

its a good risk vs reward for Thomson. its mostly management of hospital with a view of ownership if it turns out well.